Which of the Following Is True Regarding Fred's Practice of Requiring

question 20

Multiple Choice

Which of the following is true regarding Fred's practice of requiring a complete package purchase from him if the consumer desires any funeral services?

• A) There is no problem with that practice under federal law.
• B) There is no problem with that practice under federal law so long as Fred informs customers of that prior to entering into any sales talk and negotiation.
• C) That practice is prohibited by federal law.
• D) That practice is prohibited by federal law unless Fred gives a 10% discount as compared to the average price of funeral services in his state.
• E) That practice is prohibited by federal law unless cremation services are involved in which case Fred may link the cremation services with the purchase of other goods and services because cremation in and of itself results in little profit.

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Definitions:

Capital Gains Return

The profit realized from the sale of securities or investments which have increased in value over the time they were held.

Super-Normal Voting Rights

Voting rights that are greater than one vote per share, typically granted to certain class of shares to retain control in a company.

Preemptive Right

The right of existing shareholders to purchase additional shares in a company before the company offers them to the public, to maintain their proportionate ownership in the company.

After-Tax Yield

The profitability of an investment after all taxes have been deducted, providing a true picture of the investment's return.